hi, looking for an advice if I should enroll into Vanguard managed services that cost around $300 annually for every $100k investment. Again I have the time to invest in but looking for an expert advise to grow my investment. my challenge is that after speaking with an advisor, it seems they want to do more of a retirement or long term planning vs propose something custom that grow my investment on annual basis keeping my risk profile in mind. Is it too much to ask for? appreciate advise from others who may have gone through this earlier.
If you’re talking about money in your 401k account, managed investment is not worth it. All they do is gauge your risk tolerance and create a diversified mix that fits your profile. I’m a couple of decades away from retirement, so I have enough time to weather two recessions. As such, I don’t care about holding any bonds. Mine is 100% stocks in a mutual fund to maximize growth. I’m watching for downturn below the normal fluctuation. When it dips below my comfort percentage, I sell. It does mean that I have to watch my portfolio at least once a day. There are free tools out there to track the performance of your funds or stock, Yahoo Finance is a good one. Most Vanguard funds and ETFs have a ticker symbol that you can plug directly into the app.
How frequently you adjust your portfolio? I am too at least 20 years away from retirement but tracking portfolio every day seems lot of time investment?
Sometimes I adjust 401k once a month, because Vanguard will penalize me if I change more often. Tracking every day is not a lot of effort, especially considering that recession is a real possibility this year. Once you set it up, it takes seconds to glance at the chart.
I haven’t come across an active manager who has beaten market performance in the long term. If you find someone who does this consistently, go for it.
Meaning they aren’t worth it? Specially when Vanguard ETF funds are widely used and successful. Don’t they recommend those?
Invest in a passive Vangurd fund that tracks the market (which will have its nominal expense ratio). But I wouldn’t pay any extra money on top of that so a ‘human advisor’ can advise me or manage my account.